Goodhill Enterprise

GROWING SIDE BY SIDE WITH CAMBODIA

GOODHILL ENTERPRISE

Distribution

Dynamo

Goodhill Enterprise (Cambodia) Ltd is enjoying a remarkable growth curve which is ahead of the country as a whole, bringing more international brands to retailers and consumers Writer: Tom Wadlow Project Manager: Josh Hyland

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here are many reasons for Cambodian retailers and wholesalers to be buoyant.

Sustained economic growth of seven percent per year, rising consumer purchasing power and a digitally-enabled, youthful population who are exposed to an increasing variety of international brands all add up to a vibrant and rapidly evolving shopping sphere.

“It is currently an exciting time to be in the consumer retail and wholesale sector, as evidenced by the entry of several international players,” remarks

Teoh Oon Kiat, Managing Director of leading full-service distributor Goodhill Enterprise (Cambodia) Ltd. “Following the success of its first Cambodia mall in mid-2014, Japanese retail group Aeon has already opened a second mall and is now planning to start construction on the third in 2020.

Makro from Thailand first opened in Phnom Penh at the end of 2017 and has already expanded to Siem Reap with its second outlet in early 2019.

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Asia Outlook issue 41 | 3

GOODHILL ENTERPRISE

COMPANY HISTORY

ABOUT GOODHILL ENTERPRISE (CAMBODIA) LTD The Goodhill Group of Companies, established in Singapore in 1973, first entered Cambodia in 1989 when the Vietnamese withdrew and two years before the Paris Peace Accord was signed. The distribution business began operating in 1993.

The company arrived with little experience in the distribution market, but its early mover status allowed it to pick up the mantle quickly, its Singaporean roots also an advantage with clients trusting the payments process from the city-state’s banks.

“We started with Darlie toothpaste and Gestetner office equipment in 1993, followed by paper from Asia Pulp and Paper (APP) in 1994 and consumer products from Procter and Gamble (P&G) in 1995,” says Oon Kiat. “As we grew, we gradually acquired more brands which are currently divided into six divisions, each of them having an experienced head and a dedicated operations team.”

These six subsectors include: CONSUMER: Brand partners include P&G, Darlie, Mondelez and Kellogg’s CONFECTIONERY, BEVERAGE AND DAIRY: Want Want, Malee, Ferrero, Fonterra and Dutch Mill PAPER AND STATIONERY: Asia Pulp and Paper, Pilot, Linc and Staedtler AUTOMOTIVE CARE: Castrol and BP LIGHTING AND ELECTRICAL: Philips, Hager and Cadivi OFFICE AUTOMATION: Ricoh and Gestetner The Goodhill Group of Companies also covers Malaysia, China and Myanmar.

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“Another example is the US convenience store chain Circle K. Since opening its first outlet in early 2018, Circle K has quickly expanded to more than 20 outlets within a year.”

And the potential to develop this sector further is enormous – informal trade still makes up more than 80 percent of the mass consumer products market given the majority of Cambodians reside in rural areas.

“We believe that these are still early days and there will be plenty of room for further development in the consumer retail and wholesale market,” Oon Kiat continues.

“This is why we are continuing to deepen our distribution coverage and penetration in Phnom Penh, while also investing into expanding our branches in six key provinces outside of the city. Although income disparity is still wide in Cambodia, it is encouraging to see that the benefits of economic development and income growth are also spreading to provinces outside Phnom Penh.”

UPSKILLING FOR THE FUTURE Asked about the major challenges that lie ahead for the development of this vibrant industry in Cambodia, Oon Kiat is quick to highlight a skills deficit as a potential obstacle holding back progress.

Already playing catchup with modernised counterparts following the Khmer Rouge period, which saw many intellectuals killed, the country is also dealing with the disruptions brought about by the rapid influx of industry 4.0 and the technological demands carried with it.

“The breadth and depth of the talent pool in Cambodia is still relatively limited, which is a severe constraint in the journey to become future-ready,” Oon Kiat says.

“Take our industry. I have mentioned that the modern trade is a growing channel with many new foreign and local entrants in the last few years, however, the talent pool of experi-

GOODHILL ENTERPRISE “We also sign up for external trainings, like the recent workshop by the Harvard Professor Sunil Gupta in a bid to familiarise and open our minds to new possibilities in the digital era,” the Managing Director adds. “Learning and development is an integral part of Goodhill’s quest to become future-ready and remain relevant.”

A FULL-SERVICE DISTRIBUTOR

Goodhill was one of the first in Cambodia to be awarded with Best Trader Group status enced and specialised people able to manage the modern trade channel well is still relatively limited.

“So now, while we are having to continue to strengthen in our traditional trade channel and build up experience and skills to better manage our modern trade, there is an additional challenge to start understanding and embracing ecommerce and the digital channel.”

New entrants to the market are placing an even greater squeeze on this talent crunch, but with the arrival of multinationals comes a raising of standards to international levels, something Oon Kiat identifies as a positive trend along with reform efforts from Cambodia’s Ministry of Education.

Goodhill is also addressing the skills conundrum head on.

A vital component of its strategic plans, expanding local knowledge and nurturing homegrown expertise is actively encouraged in the organisation.

The Managing Director explains: “From day one the company had the foresight to base expatriates in Cambodia and over the years we continued 6 | Asia Outlook issue 41

to develop our internal talents, complementing them with experienced professionals from MNCs. “We are also now putting in place a talent management programme to identify suitable candidates and help accelerate their development in a bid to nurture our next generation leaders.”

Indeed, Oon Kiat is passionate about driving Goodhill as a Great Place to Work, becoming a home away from home for its people and offering opportunities for them to develop their skills.

For example, the firm has established the Goodhill Learning Hub for in-house training and conferences for up to 60 people at a time. Here, the company holds twice-yearly professional development training courses on top of many other meetings and events, while the management team take part in a corporate away day offsite in Cambodia or abroad to brainstorm new ideas.

Close collaboration with its brand partners is also paramount to these upskilling efforts, not least with FMCG giant P&G, who help to train Goodhill’s beauty product advisors and organise workshops focused on creating the distributor of the future, allowing Oon Kiat and his team to take best practice learnings from other P&G distributors.

Such efforts have already paid dividends since the Singaporean company arrived in Cambodia in 1989, its highly skilled team building up a formidable distribution network across the country and investing in infrastructure to serve its brand partners.

For Oon Kiat, this has been fundamental to Goodhill’s success to date.

“Instead of using sub-distributors or wholesalers to service the key provincial cities, we chose to invest in setting up branches in these six key provinces with our own team, office and warehouse so that we can have greater control and execute better in these areas,” he says.

“Systems wise, we relied on inhouse expertise to develop our own distribution management system and customised our own version of salesforce automation system. Now that we are outgrowing these legacy systems, we are planning to invest in enterprise resource planning (ERP) and warehouse management solutions to help us achieve better productivity.

“With the right investments into these areas over the last 20 years, we have developed into a full-service distributor with a wide range of services from market feasibility analysis, clearance and trucking, sales and marketing, warehousing and delivery to aftersales services.

This credibility built up over the years was also recognised by the General Department of Customs and Excise, Goodhill being among the first eight companies across Cambodia to be awarded the Best Trader Group status.

L

inc Pen & Plastics Ltd. is amongst the top manufacturers and exporters of Writing Instruments from India.

We specialise in a wide range of low and ultra-low viscosity ball Point Pens, Gel Pens and Markers with exports to over 50 countries.

Linc has a manufacturing capacity of 2.8 million pens per day. The company has four manufacturing units in Kolkata and Mumbai with a dedicated team who are committed to produce excellent quality pens at affordable prices and deliver high customer satisfaction.

Linc Pens reiterates its endless quest for innovation and research for the last four decades by launching the futuristic, new generation pen, “Pentonic”, as an extension to the wide range of office and classroom products.

“Pentonic”, the biggest launch for the year 2019, is an up-market ULV ballpoint pen which has received exceptional response across borders.

On the celebrating moment of Pentonic‘s launch, Mr Rohit Deepak Jalan, Director, Linc Pen and Plastics Limited, said: “In a time when the world is moving towards digitalization and students are typing more than writing, Pentonic gives a reason to write for its effortless smooth writing feature and Hybrid ink technology.

“We at Linc, aim to differentiate ourselves with innovative products and packaging ideas, understand the consumer trends and ensure that our customers are delighted with the products they receive.”

LINC PEN AND PLASTICS LTD 3, ALIPORE ROAD 1ST FLOOR, SATYAM TOWERS KOLKATA 700027, INDIA TELEPHONE: +91 (0)33 24398066 EMAIL: exports@lincpen.com www.lincpen.com

We really appreciate and value our association with Goodhill Enterprise Cambodia and how they believe in our plans and vision for Pentonic. We sincerely thank Goodhill Enterprise for their seamless cooperation and their welcoming attitude.

T +91 (0)33 24398066

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E exports@lincpen.com

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www.lincpen.com

GOODHILL ENTERPRISE

“We have to understand the brand owners’ objectives and apply the local market conditions and consumer insights to customise the most appropriate solution for them,” Oon Kiat continues.

“For example, depending on the brand owner’s strategy, budget and product price points, we may suggest a customised distribution model with more targeted coverage of certain channels or geography instead of a one-size fits all coverage model.”

In areas too small to set up its own branch and where sub-distributors are below satisfactory levels, Goodhill has stationed its own sales representatives who coordinate with the nearest company warehouse to ensure products are delivered in a timely 8 | Asia Outlook issue 41

manner. Post implementation analysis shows a sales growth of 22 percent with no increase in distribution costs.

This approach has enabled the company to build up a portfolio of well over 50 international and regional brands, many of its partners on board for more than a decade thanks to its reliable, consistent service.

Oon Kiat also touched upon technology and the need to move with the times, another enabler of these long-term relationships with customers. There are four broad areas making up the organisation’s digital roadmap, the first being the aforementioned ERP and warehouse management systems which will help to streamline operations and optimise resources.

The second involves exploiting the rising trend of online and digital banking and payment methods sweeping through Cambodia, with social media and ecommerce a big focus for Oon Kiat, who believes this will add tremendous value to its brand partners. So too will harnessing the value of consumer data, the third pillar of Goodhill’s digital roadmap.

“The fourth area is more aspirational but the most transformational if we are able to do it successfully,” adds Oon Kiat. “After gaining more experience in the digitalisation journey, our goal should be set on identifying major pain points of consumers or industries and attempting to solve them using digital technologies to create disruptive solutions or business models.

Want Want Group Your faithful and reliable business partner! for business enquiries, pleasse contact us at: International@want-want.com

Want Want Group is the No. 1 Rice Cracker Manufacturer in the World.

Want Want’s main goal is to be recognizable across the entire world.

Want Want has extended its network overseas and has entered countless markets across the world. Our overseas sales team now covers 59 different countries across 6 continents. Want Want will continue to select vital countries in order to work on marketing intensive cultivation and will constantly expand into an even larger sales network.

• Over 35 years rice cracker manufacturing experience • In-house milled Japonica Rice used to ensure the best quality, flavor, aroma, and texture.

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All Natural Rice Biscuits for Kids • Baby Bites for babies 6 months + • Toddler Mum-Mum for toddlers 2 years + All these products are available in Cambodia, imported by: GOODHILL ENTERPRISE (CAMBODIA) No. 214-218, Preah Sihanouk Boulevard, Phnom Penh, Cambodia.

Tel: (855)23 217 888 Goodhill imported Want Want & Baby Bite for sales & distribution in Cambodia since 2010.

Please visit us at http://www.want-want.com for more product information.

GOODHILL ENTERPRISE

Darlie Established in the 1930’s, Hawley & Hazel Group is a reliable and trusted manufacturer of high quality Darlie oral care products. Darlie is now a well-known oral care brand in markets such as China, Malaysia, Thailand, Singapore, Taiwan, and Hong Kong, among others.

Since 1990s, we have introduced Darlie to Cambodia with our partnership with Goodhill Enterprise.

With their national distribution network, extensive driven marketing strategies and professional management, our products have successfully penetrated into Cambodian households. Darlie products are now available in local supermarkets and grocery stores.

Goodhill’s management team often take part in corporate away days offsite to brainstorm new ideas “If we are able to embrace digitalisation to this level, then we will be able to not only survive but even thrive in the digital age.”

CROSSING BORDERS As well as growing its digital capabilities, Goodhill is also eyeing up bold physical expansion.

In Phnom Penh, it is set to complete the building of a 4,000-square-metre corporate office and a 10,000-square-metre warehouse by 2020, and beyond Cambodia, Oon Kiat plans to enter markets across the wider Indochina region such as Myanmar and Laos.

The company has already been dealing in the paper and stationery market in the former since 2011, but in a limited capacity due to restrictions on foreign trading. However, now the Myanmar government has relaxed legislation on overseas investment, Goodhill is looking to set up a full-scale distribution operation using Cambodia as a template.

Real estate is another natural opening for the company. Given its experience in buying land and building its own warehouses and commercial 10 | Asia Outlook issue 41

Let Darlie be your daily partner in oral health!

facilities, Oon Kiat highlights the potential to explore more land investments in strategic locations across the country and develop similar assets for other organisations to either rent or purchase.

Diversification and expansion do not stop here, however.

“The third part of our growth strategy is our Reform to Transform project,” the Managing Director says. “We plan to transform the supply chain function from a cost centre servicing in-house customers to a profit centre – a 3PL servicing internal and external customers.

“Supply chain is one of the core competencies of a world class distributor and we need to continually scale up our service levels and keep abreast of rapid industry developments.

“By transforming supply chain into a 3PL business, it both strengthens our position as a distributor of choice for our brand partners and adds another revenue stream for us to justify the extensive investments into people, systems and infrastructure.”

Central to this development will be ongoing collaboration with partners and suppliers, companies that Oon

P&G (Singapore) Pte Ltd. P&G serves consumers around the world with one of the strongest portfolios of trusted, quality, leadership brands. P&G has operated in the Asia Pacific, Middle East and Africa region for over 80 years.

Innovation is at the heart of P&G’s business, setting its brands apart from competition and delighting consumers around the world. Every day, P&G works to improve people’s lives in small but meaningful ways with its brands

www.pg.co.uk

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Improving Everyday Life.

Our brands are trusted in millions of living rooms, kitchens, laundry rooms, and bathrooms around the world. Over the course of 181 years, we make every day more than ordinary.

Asia Outlook issue 41 | 11

GOODHILL ENTERPRISE

The company’s CSR is built on an ethos focused on conducting business in an ethical and sustainable way

Kiat is quick to praise for the integral role they play in Goodhill’s success story.

“Strong relationships with our business partners are definitely vital for our business as we will not be able to win in the market unless we have the trust and support of our brand partners, especially when business conditions are challenging,” he says. “We need to cultivate and nurture the relationship with them carefully to build trust and then strengthen it over time.”

Goodhill generally classifies partners into two broad categories – tactical/trading partnerships which predominantly concern sales and taking products to market, and strategic partnerships which involve closer collaborations on product packaging and development, branding and marketing elements.

Setting and aligning clear expec12 | Asia Outlook issue 41

“WE REGULARLY CONTRIBUTE OUR PROD­ UCTS TO VARIOUS LESS PRIVILEGED GROUPS IN ORPHANAGES, HOSPITALS, NGOS AND SCHOOLS” tations is paramount to the success of both forms of collaboration, an approach which has enabled Goodhill to develop a strong and resilient portfolio. Synergy, scalability and sustainability are three vital factors the firm looks for when scouting potential suppliers.

“In addition to having mutual trust and support, we enjoy working with brand partners who have clear goals in the market with the right building blocks to achieve them,” Oon Kiat adds.

“With some, we have also progressed to working on joint business plans where key business objectives are aligned – some partners even

mandated Goodhill’s profitability as one of their KPIs, which goes to show the extent they view us as a business partner instead of just a customer or trading partner.”

GIVING BACK TO CAMBODIA Indeed, building up a sustainable business in an ethical way is, for Oon Kiat, the most fundamental form of corporate social responsibility.

Besides providing fulfilling career opportunities to Cambodian citizens and contributing positively to the country’s economy, the company is giving back in a number of other ways at a community level, not least in the

RETAIL form of continued support for the underprivileged.

“We regularly contribute our products to various less privileged groups in orphanages, hospitals, NGOs and schools or donate to organisations like the Cambodian Red Cross,” Oon Kiat explains. “We rotate the donations to

different organisations so as to spread the help more widely to different needy groups.

“Where possible, we try to incorporate a charitable aspect to our promotional activities. For example, for our Staedtler brand, we organised the World Kids Coloring Day event in

LEADERSHIP FOCUS

TEOH OON KIAT’S JOURNEY Getting involved with the family business was not a straightforward decision for Oon Kiat, who was raised in Singapore. Here he explains his journey into the company…

“Growing up in Singapore, many of us had a narrative that was subconsciously imposed upon us by well-meaning parents: Study hard, go to university, graduate, get a job in a good company, work hard, climb the corporate ladder to senior management roles and retire comfortably. Of course, along this journey, get married, buy a house, have kids and ensure that they too study hard and repeat the cycle.

“I was coasting along this typical narrative, studying hard, got a scholarship for my university education, graduated with a degree in accounting and worked for KPMG and Hewlett Packard for a couple of years. But the journey was disrupted in 2004 when Dad came home one day and told me that an Indonesian expatriate in Goodhill Cambodia had resigned, and asked whether I would like to fill this role.”

“Cambodia was not a very conventional choice at that time as there was a common perception of it being a backward and unsafe country.

“However, from the opportunity standpoint, I felt that the Indochina region was just opening up and at the initial stages of economic development. It was the right time to further entrench our business in Cambodia and also use Cambodia as a base to expand across the rest of the emerging Indochina region.

“On a personal level, since I was also single then and still mobile, it was probably the best period for me to base myself overseas to gain regional exposure and experience something different as an ‘intrapreneur’.”

“15 years on, I am enjoying the intrapreneurial journey which has allowed me the autonomy and freedom of an entrepreneur but with the resources and support of an existing company platform. I am convinced that Goodhill has to continue to foster a conducive environment to identify and enable more intrapreneurs who can create an exciting and rewarding future for both the company and themselves.”

Cambodia, whereby school children participate in the colouring contest and their works are then sold to donors with the funds given to a charity.

“Such activities are very meaningful as they allow the children to express their creativity and also understand from a young age the importance of helping those less fortunate.”

As Goodhill continues to expand its activities and drive towards becoming IPO-ready, more opportunities to support local community causes will arise, a prospect which prompts Oon Kiat to reiterate his confidence in the future of development of Cambodia.

He concludes: “The projected GDP growth of Cambodia in the next three to five years remains healthy at around six to seven percent. If Cambodia continues on its pro-business policies, education and tax reforms, and follows through with the Industrial Development Plan and smart city initiatives, the mid- to long-term prospects of the country remain bright.

“The retail and wholesaling industry will definitely be developing in tandem with the country’s economic developments. The increase of disposable income of the growing middle class coupled with rapid urbanisation will mean that this industry will continue to be attractive.

“Goodhill’s aspirations are to not only participate in this growth but also attempt to lead the developments in the sector by futureproofing our business models and developing industry leading talents. Our intention is to widen and deepen our investments into Cambodia and continue to enrich Cambodian consumers’ lives with our global brands.”

GOODHILL ENTERPRISE Tel: 855 (23) 217 888/889/890 main_acc@goodhill.com.kh www.goodhill.com.kh

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GOODHILL ENTERPRISE 214-218 Preah Sihanouk Boulevard, Phnom Penh, Kingdom of Cambodia Tel: 855 (23) 217 888/889/890 main_acc@goodhill.com.kh www.goodhill.com.kh

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